News Snippet

  1. News 1: Preventive detention serious invasion of personal liberty
  2. News 2: AFSPA extended in Nagaland, Arunachal
  3. News 3: SC Collegium recommends transfer of two Chief Justices and elevation of three judges
  4. News 4: Core sector slowed to 3.3% growth in Aug
  5. News 5:  Centre raises natural gas prices by 40% 
  6. News 6: Putin annexes four Russia-held regions of Ukraine, calls for talks 
  7. News 7: PM flags off Vande Bharat Express 2.0 from Gandhinagar
  8. News 8: Reserve Bank raises rates by 50 bps, brings down growth outlook to 7%
  9. Other Important News
    1. ONDC

 

News 1: Preventive detention serious invasion of personal liberty


Background

Underlining that “preventive detention is a serious invasion of personal liberty”, the Supreme Court ruled that safeguards laid down in the Constitution and laws authorizing detention “must” therefore “be strictly adhered to”.

Preventive detention

  1. The bench referred to the 1982 SC decision in the ‘Ashok Kumar vs Delhi administration case which said “preventive detention is devised to afford protection to society.
  2. The objective is not to punish a man for having done something but to intercept before he does it and to prevent him from doing” and added that “in view of the above object of the preventive detention.
  3. It added that “preventive detention is a serious invasion of personal liberty, and the normal methods open to a person charged with commission of any offence to disprove the charge or to prove his innocence at the trial are not available to the person preventively”.

Constitutional provision

Article 22(3) provides that if the person who has been arrested or detained under preventive detention laws then the protection against arrest and detention provided under article22 (1) and22 (2) shall not be available to that person.

Grounds For Preventive Detention

  1. Security of state, maintenance of public order,
  2. maintenance of supplies and essential services and defense,
  3. foreign affairs or security of India.
  4. A person may be detained without trial only on any or some of the above grounds.

A detainee under preventive detention can have no right of personal liberty guaranteed by Article 19 or Article 21.

Safeguards Provided in Constitution

  1. To prevent reckless use of Preventive Detention, certain safeguards are provided in the constitution.
  2. Firstly, a person may be taken to preventive custody only for 3 months at the first instance.
  3. If the period of detention is extended beyond 3 months, the case must be referred to an Advisory Board consisting of persons with qualifications for appointment as judges of High Courts.
  4. It is implicit, that the period of detention may be extended beyond 3 months, only on approval by the Advisory Board.
  5. Secondly, the detainee is entitled to know the grounds of his detention. The state, however, may refuse to divulge the grounds of detention if it is in the public interest to do so.
  6. Needless to say, this power conferred on the state leaves scope for arbitrary action on the part of the authorities.
  7. Thirdly, the detaining authorities must give the detainee earliest opportunities for making representation against the detention.

News 2: AFSPA extended in Nagaland, Arunachal


Background

  1. The Ministry of Home Affairs (MHA) has extended the Armed Forces (Special Powers) Act (AFSPA) in parts of Arunachal Pradesh and Nagaland for another six months.

AFSPA


News 3: SC Collegium recommends transfer of two Chief Justices and elevation of three judges


Background

The Supreme Court Collegium led by Chief Justice of India U.U. Lalit has recommended the government transfer of Chief Justices of Orissa and Jammu and Kashmir High Courts.

Transfer and appointment of judges

Constitutional provision:

  1. Articles 124(2) and 217 of the Constitution deal with the appointment of judges to the Supreme Court and High Courts.
  2. The appointments are made by the President, who is required to hold consultations with “such of the judges of the Supreme Court and of the High Courts” as he may think is needed.
  3. But the Constitution does not lay down any process for making these appointments.

Collegium

  • It is the way by which judges of the Supreme Court and High Courts are appointed and transferred.
  • The collegium system is not rooted in the Constitution, or a specific law promulgated by Parliament; it has evolved through judgments of the Supreme Court.
  • The Supreme Court collegium is a five-member body, which is headed by the incumbent Chief Justice of India (CJI) and comprises the four other senior most judges of the court at that time.
  •  A High Court collegium is led by the incumbent Chief Justice and four other senior most judges of that court.
  • Judges of the higher judiciary are appointed only through the collegium system, and the government has a role only after names have been decided by the collegium.
  • Names that are recommended for appointment by a High Court collegium reaches the government only after approval by the CJI and the Supreme Court collegium.
  • The role of the government in this entire process is limited to getting an inquiry conducted by the Intelligence Bureau (IB) if a lawyer is to be elevated as a judge in a High Court or the Supreme Court.
  • The government can also raise objections and seek clarifications regarding the collegium’s choices, but if the collegium reiterates the same names, the government is bound, under Constitution Bench judgments, to appoint them as judges.

Evolution of Collegium System


News 4: Core sector slowed to 3.3% in August


Background

Output growth in India’s eight core infrastructure sectors slowed to 3.3% in August from 4.5% in the previous month. This is the slowest pace seen since November 2021, with crude oil and natural gas continuing to report contractions while electricity and steel production clocked sharply lower expansions than in the previous month.


News 5:  Centre raises natural gas prices by 40%


Background

Prices of natural gas, used to generate electricity, make fertilizers and converted into CNG to run automobiles, were raised by a steep 40% to record levels, in step with firming global energy rates.

Natural gas

Natural gas is a fossil energy source that formed deep beneath the earth’s surface. Natural gas contains many different compounds. The largest component of natural gas is methane. Natural gas also contains smaller amounts of natural gas liquids (NGLs, which are also hydrocarbon gas liquids), and nonhydrocarbon gases, such as carbon dioxide and water vapor.

 

 


News 6: Putin annexes four Russia-held regions of Ukraine, calls for talks


Background

  1. Russian President Vladimir Putin annexed four territories in Ukraine controlled by his Army at a grand ceremony in the Kremlin and urged Kyiv to lay down its arms and negotiate an end to seven months of fighting.
  2. The four annexed regions are Luhansk, Donetsk, Kherson and Zaporizhzhya.
  3. With the formal annexation of Kherson, Zaporizhzhia, Donetsk and Luhansk, nearly 15% of Ukraine’s territory will come under Russian control.

How much Ukrainian territory does Russia control


News 7: PM flags off Vande Bharat Express 2.0 from Gandhinagar


Background

Prime Minister flagged off the new and upgraded version of the Vande Bharat Express which will run from Gandhinagar in Gujarat to Mumbai in Maharashtra. 

Vande Bharat Express


News 8: Reserve Bank raises rates by 50 bps, brings down growth outlook to 7%


Background

The Reserve Bank of India’s Monetary Policy Committee (MPC) raised the policy repo rate by 50 basis points (bps) to 5.9%, with RBI Governor Shaktikanta Das citing the persistence of high inflation.

Monetary Policy Committee

Section 45ZB of the amended RBI Act, 1934 provides for an empowered six-member  (3 RBI officials + 3 Nominated by govt) monetary policy committee (MPC) to be constituted by the Central Government by notification in the Official Gazette. The first such MPC was constituted on September 29, 2016.

Constitution of Members

  1. Chairperson: RBI Governor
  2. Vice Chairperson: Deputy Governor of the Reserve Bank of India in charge of Monetary Policy
  3. Other Members: One officer of the Reserve Bank of India to be nominated by the Central Board
  4. External members: Noted Economists, finance experts etc, who’re not office bearers in RBI.
  5. (External members, will hold office for a period of four years or until further orders, whichever is earlier)

Objective

  1. The MPC determines the policy repo rate required to achieve the inflation target.

Meetings

  1. The MPC is required to meet at least four times in a year. The quorum for the meeting of the MPC is four members.
  2. Each member of the MPC has one vote, and in the event of an equality of votes, the Governor has a second or casting vote.

Inflation Target

  1. Under Section 45ZA, the Central Government, in consultation with the RBI, determines the inflation target in terms of the Consumer Price Index (CPI), once in five years and notifies it in the Official Gazette.
  2. Section 45ZB of the RBI Act provides for the constitution of a six-member Monetary Policy Committee (MPC) to determine the policy rate required to achieve the inflation target.

Failure to Maintain Inflation Target

The Central Government has notified the following as the factors that constitute failure to achieve the inflation target:

  1. the average inflation is more than the upper tolerance level of the inflation target for any three consecutive quarters; or
  2. the average inflation is less than the lower tolerance level for any three consecutive quarters.

Where the Bank fails to meet the inflation target, it shall set out in a report to the Central Government:

  1. the reasons for failure to achieve the inflation target;
  2. remedial actions proposed to be taken by the Bank; and
  3. an estimate of the time-period within which the inflation target shall be achieved pursuant to timely implementation of proposed remedial actions.

Repo Rate: The interest rate at which the Reserve Bank provides liquidity under the liquidity adjustment facility (LAF) to all LAF participants against the collateral of government and other approved securities.

2017 UPSC prelims question

Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC)?

  1. It decides the RBI’s benchmark interest rates.
  2. It is a 12-member body including the Governor of RBI and is reconstituted every year.
  3. It functions under the chairmanship of the Union Finance Minister.

Select the correct answer using the code given below :

(a) 1 only

(b) 1 and 2 only

(c) 3 only

(d) 2 and 3 only

Answer : Option a


Other important news


Open Network Digital Commerce:

Open Network for Digital Commerce (ONDC) is a network based on open protocol and will enable local commerce across segments, such as mobility, grocery, food order and delivery, hotel booking and travel, among others, to be discovered and engaged by any network-enabled application.

The platform aims to create new opportunities, curb digital monopolies and by supporting micro, small and medium enterprises and small traders and help them get on online platforms.

It is an initiative of the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry.

Features of ONDC

ONDC, seeks to democratise digital or electronic commerce, moving it from a platform-centric model to an open-network.

Through ONDC, merchants will be able to save their data to build credit history and reach consumers.

The proposed government-backed platform aims to create a level playing field for e-commerce behemoths such as Amazon, Flipkart, and offline traders who have been crying foul at the unfair trade practices of these e-tailers.

In this system, ONDC plans to enable sellers and buyers to be digitally visible and transact through an open network, regardless of what platform or application they use.

It will also empower merchants and consumers by breaking silos to form a single network to drive innovation and scale, transforming all businesses from retail goods, food to mobility.

The new framework aims at promoting open networks developed on open-sourced methodology, using open specifications and open network protocols independent of any specific platform.

It is expected to digitise the entire value chain, standardise operations, promote inclusion of suppliers, derive efficiencies in logistics and enhance value for consumers.

NBFCs

Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956. They offer niche banking services.

They are not exactly banks because they generally don’t accept deposits, but we have a few exceptions where NBFC can accept deposits (NBFC-D).

Difference between NBFCs and banks

NBFCs lend and make investments and hence their activities are akin to that of banks; however, there are a few differences as given below:

  1. NBFC cannot accept demand deposits.
  2. NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself.
  3. deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs, unlike in case of banks.

 

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  • The United Nations has shaped so much of global co-operation and regulation that we wouldn’t recognise our world today without the UN’s pervasive role in it. So many small details of our lives – such as postage and copyright laws – are subject to international co-operation nurtured by the UN.

    In its 75th year, however, the UN is in a difficult moment as the world faces climate crisis, a global pandemic, great power competition, trade wars, economic depression and a wider breakdown in international co-operation.

    Flags outside the UN building in Manhattan, New York.

    Still, the UN has faced tough times before – over many decades during the Cold War, the Security Council was crippled by deep tensions between the US and the Soviet Union. The UN is not as sidelined or divided today as it was then. However, as the relationship between China and the US sours, the achievements of global co-operation are being eroded.

    The way in which people speak about the UN often implies a level of coherence and bureaucratic independence that the UN rarely possesses. A failure of the UN is normally better understood as a failure of international co-operation.

    We see this recently in the UN’s inability to deal with crises from the ethnic cleansing of the Rohingya Muslims in Myanmar, to civil conflict in Syria, and the failure of the Security Council to adopt a COVID-19 resolution calling for ceasefires in conflict zones and a co-operative international response to the pandemic.

    The UN administration is not primarily to blame for these failures; rather, the problem is the great powers – in the case of COVID-19, China and the US – refusing to co-operate.

    Where states fail to agree, the UN is powerless to act.

    Marking the 75th anniversary of the official formation of the UN, when 50 founding nations signed the UN Charter on June 26, 1945, we look at some of its key triumphs and resounding failures.


    Five successes

    1. Peacekeeping

    The United Nations was created with the goal of being a collective security organisation. The UN Charter establishes that the use of force is only lawful either in self-defence or if authorised by the UN Security Council. The Security Council’s five permanent members, being China, US, UK, Russia and France, can veto any such resolution.

    The UN’s consistent role in seeking to manage conflict is one of its greatest successes.

    A key component of this role is peacekeeping. The UN under its second secretary-general, the Swedish statesman Dag Hammarskjöld – who was posthumously awarded the Nobel Peace prize after he died in a suspicious plane crash – created the concept of peacekeeping. Hammarskjöld was responding to the 1956 Suez Crisis, in which the US opposed the invasion of Egypt by its allies Israel, France and the UK.

    UN peacekeeping missions involve the use of impartial and armed UN forces, drawn from member states, to stabilise fragile situations. “The essence of peacekeeping is the use of soldiers as a catalyst for peace rather than as the instruments of war,” said then UN Secretary-General Javier Pérez de Cuéllar, when the forces won the 1988 Nobel Peace Prize following missions in conflict zones in the Middle East, Africa, Asia, Central America and Europe.

    However, peacekeeping also counts among the UN’s major failures.

    2. Law of the Sea

    Negotiated between 1973 and 1982, the UN Convention on the Law of the Sea (UNCLOS) set up the current international law of the seas. It defines states’ rights and creates concepts such as exclusive economic zones, as well as procedures for the settling of disputes, new arrangements for governing deep sea bed mining, and importantly, new provisions for the protection of marine resources and ocean conservation.

    Mostly, countries have abided by the convention. There are various disputes that China has over the East and South China Seas which present a conflict between power and law, in that although UNCLOS creates mechanisms for resolving disputes, a powerful state isn’t necessarily going to submit to those mechanisms.

    Secondly, on the conservation front, although UNCLOS is a huge step forward, it has failed to adequately protect oceans that are outside any state’s control. Ocean ecosystems have been dramatically transformed through overfishing. This is an ecological catastrophe that UNCLOS has slowed, but failed to address comprehensively.

    3. Decolonisation

    The idea of racial equality and of a people’s right to self-determination was discussed in the wake of World War I and rejected. After World War II, however, those principles were endorsed within the UN system, and the Trusteeship Council, which monitored the process of decolonisation, was one of the initial bodies of the UN.

    Although many national independence movements only won liberation through bloody conflicts, the UN has overseen a process of decolonisation that has transformed international politics. In 1945, around one third of the world’s population lived under colonial rule. Today, there are less than 2 million people living in colonies.

    When it comes to the world’s First Nations, however, the UN generally has done little to address their concerns, aside from the non-binding UN Declaration on the Rights of Indigenous Peoples of 2007.

    4. Human rights

    The Human Rights Declaration of 1948 for the first time set out fundamental human rights to be universally protected, recognising that the “inherent dignity and of the equal and inalienable rights of all members of the human family is the foundation of freedom, justice and peace in the world”.

    Since 1948, 10 human rights treaties have been adopted – including conventions on the rights of children and migrant workers, and against torture and discrimination based on gender and race – each monitored by its own committee of independent experts.

    The language of human rights has created a new framework for thinking about the relationship between the individual, the state and the international system. Although some people would prefer that political movements focus on ‘liberation’ rather than ‘rights’, the idea of human rights has made the individual person a focus of national and international attention.

    5. Free trade

    Depending on your politics, you might view the World Trade Organisation as a huge success, or a huge failure.

    The WTO creates a near-binding system of international trade law with a clear and efficient dispute resolution process.

    The majority Australian consensus is that the WTO is a success because it has been good for Australian famers especially, through its winding back of subsidies and tariffs.

    However, the WTO enabled an era of globalisation which is now politically controversial.

    Recently, the US has sought to disrupt the system. In addition to the trade war with China, the Trump Administration has also refused to appoint tribunal members to the WTO’s Appellate Body, so it has crippled the dispute resolution process. Of course, the Trump Administration is not the first to take issue with China’s trade strategies, which include subsidises for ‘State Owned Enterprises’ and demands that foreign firms transfer intellectual property in exchange for market access.

    The existence of the UN has created a forum where nations can discuss new problems, and climate change is one of them. The Intergovernmental Panel on Climate Change (IPCC) was set up in 1988 to assess climate science and provide policymakers with assessments and options. In 1992, the UN Framework Convention on Climate Change created a permanent forum for negotiations.

    However, despite an international scientific body in the IPCC, and 165 signatory nations to the climate treaty, global greenhouse gas emissions have continued to increase.

    Under the Paris Agreement, even if every country meets its greenhouse gas emission targets we are still on track for ‘dangerous warming’. Yet, no major country is even on track to meet its targets; while emissions will probably decline this year as a result of COVID-19, atmospheric concentrations of greenhouse gases will still increase.

    This illustrates a core conundrum of the UN in that it opens the possibility of global cooperation, but is unable to constrain states from pursuing their narrowly conceived self-interests. Deep co-operation remains challenging.

    Five failures of the UN

    1. Peacekeeping

    During the Bosnian War, Dutch peacekeeping forces stationed in the town of Srebrenica, declared a ‘safe area’ by the UN in 1993, failed in 1995 to stop the massacre of more than 8000 Muslim men and boys by Bosnian Serb forces. This is one of the most widely discussed examples of the failures of international peacekeeping operations.

    On the massacre’s 10th anniversary, then UN Secretary General Kofi Annan wrote that the UN had “made serious errors of judgement, rooted in a philosophy of impartiality”, contributing to a mass murder that would “haunt our history forever”.

    If you look at some of the other infamous failures of peacekeeping missions – in places such as Rwanda, Somalia and Angola – ­it is the limited powers given to peacekeeping operations that have resulted in those failures.

    2. The invasion of Iraq

    The invasion of Iraq by the US in 2003, which was unlawful and without Security Council authorisation, reflects the fact that the UN is has very limited capacity to constrain the actions of great powers.

    The Security Council designers created the veto power so that any of the five permanent members could reject a Council resolution, so in that way it is programmed to fail when a great power really wants to do something that the international community generally condemns.

    In the case of the Iraq invasion, the US didn’t veto a resolution, but rather sought authorisation that it did not get. The UN, if you go by the idea of collective security, should have responded by defending Iraq against this unlawful use of force.

    The invasion proved a humanitarian disaster with the loss of more than 400,000 lives, and many believe that it led to the emergence of the terrorist Islamic State.

    3. Refugee crises

    The UN brokered the 1951 Refugee Convention to address the plight of people displaced in Europe due to World War II; years later, the 1967 Protocol removed time and geographical restrictions so that the Convention can now apply universally (although many countries in Asia have refused to sign it, owing in part to its Eurocentric origins).

    Despite these treaties, and the work of the UN High Commission for Refugees, there is somewhere between 30 and 40 million refugees, many of them, such as many Palestinians, living for decades outside their homelands. This is in addition to more than 40 million people displaced within their own countries.

    While for a long time refugee numbers were reducing, in recent years, particularly driven by the Syrian conflict, there have been increases in the number of people being displaced.

    During the COVID-19 crisis, boatloads of Rohingya refugees were turned away by port after port.  This tragedy has echoes of pre-World War II when ships of Jewish refugees fleeing Nazi Germany were refused entry by multiple countries.

    And as a catastrophe of a different kind looms, there is no international framework in place for responding to people who will be displaced by rising seas and other effects of climate change.

    4. Conflicts without end

    Across the world, there is a shopping list of unresolved civil conflicts and disputed territories.

    Palestine and Kashmir are two of the longest-running failures of the UN to resolve disputed lands. More recent, ongoing conflicts include the civil wars in Syria and Yemen.

    The common denominator of unresolved conflicts is either division among the great powers, or a lack of international interest due to the geopolitical stakes not being sufficiently high.  For instance, the inaction during the Rwandan civil war in the 1990s was not due to a division among great powers, but rather a lack of political will to engage.

    In Syria, by contrast, Russia and the US have opposing interests and back opposing sides: Russia backs the government of the Syrian dictator Bashar al-Assad, whereas the US does not.

    5. Acting like it’s 1945

    The UN is increasingly out of step with the reality of geopolitics today.

    The permanent members of the Security Council reflect the division of power internationally at the end of World War II. The continuing exclusion of Germany, Japan, and rising powers such as India and Indonesia, reflects the failure to reflect the changing balance of power.

    Also, bodies such as the IMF and the World Bank, which are part of the UN system, continue to be dominated by the West. In response, China has created potential rival institutions such as the Asian Infrastructure Investment Bank.

    Western domination of UN institutions undermines their credibility. However, a more fundamental problem is that institutions designed in 1945 are a poor fit with the systemic global challenges – of which climate change is foremost –  that we face today.